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TCS Q2 FY27: AI Revenue Surpasses $3.1 Billion While India Business Drops 10.3% QoQ
- •Tata Consultancy Services reported consolidated Q2 FY27 revenue of ₹73,188 crore, marking a 1.3% sequential and 11.2% year-on-year increase in rupee terms.
- •Net profit for the quarter stood at ₹13,884 crore, backed by an operating margin of 24% and a net margin of 19%.
- •The India business contracted 10.3% sequentially in constant currency terms, reducing its share of revenue to 5.5%, though it still grew 6% year-on-year.
- •Annualised AI revenue crossed $3.1 billion during the quarter, accounting for over 10% of total revenue, with total contract value reaching $9.6 billion.
- •TCS expanded its technology footprint in India through major initiatives including GCC transformations, AI capability centers, and industrial autonomy labs.
Key Questions Answered
During the second quarter of FY27, TCS reported an annualised AI revenue of US$3.1 billion, crossing 10% of total revenue, while its total contract value stood at US$9.6 billion.
The India business declined 10.3% sequentially in constant currency terms during Q2 FY27, making it the only market to register a double-digit sequential decline, though it still grew 6% year-on-year. Meanwhile, TCS posted broad-based sequential growth across its international markets.
TCS announced several India initiatives in Q2 FY27, including transitioning Best Buy's GCC into an AI Capability Center, launching the Consumer Business Group Gemini Experience Center in Kolkata with Google Cloud, setting up an Industrial Autonomy & Engineering Lab in Pune, and opening an Autonomous Engineering Lab powered by NVIDIA in Bengaluru.
